Sep 28 AT 9:28 AM Nick Gray 30 Comments

Samsung coerced to pay licensing fee to Microsoft for their Android devices

Evil_Ballmer

Samsung is the latest manufacturer to get pulled into Microsoft’s web. Samsung and Microsoft have announced a cross-licensing agreement that involves patents from both sides. While the agreement is mutually beneficial, Samsung will be paying royalties to Microsoft for every Android powered device they sell. Not only will Microsoft be getting cash for Samsung’s Android phones, but Samsung has also agreed to develop and promote new handsets running Microsoft’s Windows Phone OS.

Together with the license agreement signed last year with HTC, today’s agreement with Samsung means that the top two Android handset manufacturers in the United States have now acquired licenses to Microsoft’s patent portfolio. These two companies together accounted for more than half of all Android phones sold in the U.S. over the past year. That leaves Motorola Mobility, with which Microsoft is currently in litigation, as the only major Android smartphone manufacturer in the U.S. without a license. Brad Smith & Horacio Gutierrez Microsoft

We certainly don’t like the fact that Microsoft is profiting off Google’s success with Android, but a licensing agreement with Microsoft is much better than having your products completely banned by Apple.

If the Google acquisition of Motorola is approved, we should see Android manufacturers get the upper hand on all these patent disputes. Motorola is the only manufacturer that hasn’t been under fire. We have a feeling that its patent portfolio has a lot to do with that.

With the two largest Android manufacturers paying licensing fees to Microsoft for their Android devices, how long do you think it will take for other manufacturers to cave in?

Nick is a tech enthusiast who has a soft spot for HTC and its devices. He started HTCsource.com (the first HTC blog) back in 2007 and later joined the Android and Me family in the summer of 2010.

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  • Tony

    Eff you Microsoft and Apple and patent system altogether, ugh!!

  • Jeffroid

    Bloodsuckers. That was an understatement.

  • http://www.jeffkibuule.com Jeff

    I wonder if they can use the cross-licensing of Microsoft’s patents to defend themselves against Apple…

  • ben dover

    Google is building their patent portfolio for the Armageddon of all patent cases!
    It’s going to be bloody but I’m sure we’ll see a lot of cases slain at the hand of Google! :)

  • Mil

    Even if Google/Motorola defend and win against Microsoft, isn’t it too late for the companies that have already signed an agreement with Microsoft?

    • http://htcsource.com Nick Gray

      Not necessarily since the Samsung/Microsoft agreement is based on patents that both companies are currently in possession of. If Google acquires new patents with the Motorola deal, it would give Samsung extra leverage in their negotiation with Microsoft.

  • uknowme

    Bullshit!

  • AppleFUD

    Just the other day I was thinking, yeah I might be getting a Win8 tablet–it’s hard to let go of all the free portable software I have. Then I had yet another issue with Windows though, I have to say Win7 has been better than any other desktop OS I’ve had to deal with up to this point. Nonetheless, it was one of those stupid bugs that should never have made it into the final build, but here we are over a year after release and the bug is still there. And that more than anything is what I really hate about MS–they just can’t fix their junk. . . ever. And add this bullying BS on top of that. . . bite me MS.

    I just wish devs would start porting their windows apps over to Android, especially all the great portable apps :)
    And Google would finally pull their head out and put Chrome on Android and realize that Android is the future and work with Chrome within Android for the “Chrome OS.”

    Nonetheless, I won’t be paying for Windows every again and I don’t buy any other MS software.

    Remember, even if you buy a new computer that comes with Windows pre-installed you can get MS to refund you for Windows on that machine. They have to refund you if you ask. I’ll be asking from now on!

    • ben dover

      Windows 8 on an ARM processor wouldn’t run all your beloved x86 apps anyway.
      Might as well go android! :)

  • Eric

    koreans paying fees to americans. f

    antastic, give us the money little asians…haha

    • http://keridel.blogspot.com keridel

      you are the reason people dont like americans.

      just saying.

  • Shawn

    Ok this won’t affect the nexus prime right?

    • http://htcsource.com Nick Gray

      This won’t keep the Nexus Prime from launching. It just means Samsung will be paying Microsoft for the privilege of making the Google phone. Just a tab bit ironic.

  • Darkseider

    Apple and Microsoft are doing whatever they can to stay relevant in their respective markets. The mobile industry has spoken and Android is the future, period so Apple is scrambling. The massive data centers and the majority of the internet servers all run some flavor of *nix. The desktop/laptop PC which is Microsoft’s last bastion is slowly dying to the likes of tablets and other competition in Mac OS X and *nix. Unless these behemoths actually get off their laurels and produce something TRULY innovative they will be nothing more than “also rans” in the up and coming Post PC era.

  • http://keridel.blogspot.com keridel

    i’m glad samsung have ssettled.

    it means its one less legal battle tying up there time that could be used innovating.

    everyone hates MS for this and i understand why but they are playing the game the way it’s meant to be played.

    it’s apple who want to overturn the apple cart MS just wants some of the apples!

    • AEROSPIKE

      I AGREE, WHY SHOULDN’T MS REAP THE REWARDS OF THERE PAST LABORS, ALL SAID AND DONE THEY WERE THERE AT THE BEGINNING OF THIS SO CALLED MOBILE CONNECTED WORLD OF OURS. IF YOU’LL REMEMBER THEY WERE ONE OF THE FIRST, IF NOT THE FIRST, TO MARRY A MOBILE PC( AND NOT A PIM DEVICE )AND CELL RADIO WITH ACCESS TO CORP. SERVERS AND ALONG THE WAY WAS AWARDED PATENTS FOR THIS LABOR. SO YES MS IS JUSTIFIED IN RECEIVING ROYALTIES AND AS TO WINDOWS 8, IT’S THE BEGINNING OF COMMON COMPUTING( AN OS SHOULD BE ABLE TO RUN ON ANY HARDWARE DEVICE, BE IT MOBILE/DESK ETC. ), AFTER ALL THE COMMON LANGUAGE OF DIGITAL DEVICES IS ZERO’S AND ONE’S!! IT’S BEGINNING TO LOOK LIKE THE CITY OF BABEL, MS HAS TAKEN THE FIRST STEP’S FROM THIS CONFUSION.

  • BiGMERF

    wow… i mean from a business stand point ,can you really blame Microsoft.. I mean it is about making money. We may not like it but hey it is a business

    let the negatives flow

    • http://keridel.blogspot.com keridel

      completley agree and anyone who isnt a fanboy will agree too.

      i +1 you just so you start on a positive :D

      • http://keridel.blogspot.com keridel

        ah looks like i got the negatives for this one merf!

    • alterSchw3de

      And more important: If a giant like Samsung signs this deal it seems to be a reasonable use of microsofts knowledge.

      It’s kind of annoying everyone hates Apple for misusing the patent system and filing lawsuits against anyone but now a company like Microsoft is able to make deals without lawsuits then it’s also not okay?

      Patent agreements are nothing new in this business and more important they ARE BUSINESS
      The way apple acts is just kindergarten…

      • Your email address will not be published.

        ach halt doch die fresse

    • inviolable

      It’s just sad, and now annoying, that e-money bags Microsoft is making all that money off someone else’s products. And to actually come out and make that statement that Motorola is the only major manufacture without a license..that is dripping with arrogance. They clearly are reveling in getting over, rather than the (lack of) success of their own platform. But yea, good job with the cutthroat business moves. Samsung should make some faulty won’t devices and abstain from any hardware liability haha.

      • chuck

        Then wouldnt it be equally sad that they’re making all that money off M$’s patents?

      • http://htcsource.com Nick Gray

        Technically Microsoft is allowing Samsung to use a Microsoft product (their patent) to create a Samsung product (their phone) with Google’s product (Android). The reason Microsoft gets its share is because Android and the phone wouldn’t work right without the patented software. If there was another way to do it, I’m sure Google could have coded around it.

    • KG

      Agreed, on the same token, I hope Google gets their share from their patent portfolio. I mean, if we are talking about playing the game…..

  • Eric R.

    The patents Samsung is paying Microsoft royalties to use would be paid no matter what OS is put on the device. Again, this is business as usual. This shows that Microsoft plays nice with their patents, and this IS the actual designed purpose of the patents system. I have a patent you want to use, you pay me a royalty to use it. There is no evidence of an “evil” Microsoft here. That “non-tech / monkey-boy” Balmer just looks like an evil bastard in the doctored up photo in this article (subtle subliminal way to bias the readers opinion as they read). Historically (especially after the EU anti-competitive lawsuit from the 90′s) Microsoft has invested heavily in fostering competition, that strategy works really well.

    People get over it, Microsoft is NOT Apple. Apple IS the evil entity in court suing hardware vendors with bullshit “concept patents” that are ambiguous at best. Apple are the bastards abusing the crap out of the patents system.

    [/rant]

    • nullgod

      Actually, if you follow patent law and the patent practices of all the big companies, Sun, Microsoft, Apple, Samsung, Google, they all take out thousands of patents per year, and pay people bonuses of thousand dollars per patent they acquire for the company. They then use these patents to war between the big companies, trading off licensing to get ahead and try to block the other companies.

      The origin of patents was to protect individuals from being ripped off by their lords and masters, now they are used by corporations to battle each other and to stop small businesses/individuals who don’t have the patent portfolio to protect themselves in the courts.

      The big corporations also don’t care if the patents they take out are feasible, or even been patented before, or they saw it somewhere, ie opensource software, or in a competitors lab, or in any way makes sense.

      One of Microsofts fun tricks thru the courts was to copy a small businesses patented software, tie them up in the court system for a couple of years draining them financially, then buy the business at a very good price (for microsoft) and the patent issue is suddenly in their portfolio, where they then sue others claiming it was theirs all along.

      I get a little upset by the state of the patent system across the entire world, in case you couldn’t tell.

  • mrjlwilliams

    Greed can destroy any company, not just apple. Just watch.

  • raa

    this pic of Microsoft’s ceo is so creepy Damn!!!! Who ever did that pic good freaking job

  • willer

    hate patents wars

  1. TonyGuest 4 years ago

    Eff you Microsoft and Apple and patent system altogether, ugh!!

  2. JeffroidGuest 4 years ago

    Bloodsuckers. That was an understatement.

  3. JeffGuest 4 years ago

    I wonder if they can use the cross-licensing of Microsoft’s patents to defend themselves against Apple…

  4. Google is building their patent portfolio for the Armageddon of all patent cases!
    It’s going to be bloody but I’m sure we’ll see a lot of cases slain at the hand of Google! :)

  5. MilGuest 4 years ago

    Even if Google/Motorola defend and win against Microsoft, isn’t it too late for the companies that have already signed an agreement with Microsoft?

    • Not necessarily since the Samsung/Microsoft agreement is based on patents that both companies are currently in possession of. If Google acquires new patents with the Motorola deal, it would give Samsung extra leverage in their negotiation with Microsoft.

  6. AppleFUDGuest 4 years ago

    Just the other day I was thinking, yeah I might be getting a Win8 tablet–it’s hard to let go of all the free portable software I have. Then I had yet another issue with Windows though, I have to say Win7 has been better than any other desktop OS I’ve had to deal with up to this point. Nonetheless, it was one of those stupid bugs that should never have made it into the final build, but here we are over a year after release and the bug is still there. And that more than anything is what I really hate about MS–they just can’t fix their junk. . . ever. And add this bullying BS on top of that. . . bite me MS.

    I just wish devs would start porting their windows apps over to Android, especially all the great portable apps :)
    And Google would finally pull their head out and put Chrome on Android and realize that Android is the future and work with Chrome within Android for the “Chrome OS.”

    Nonetheless, I won’t be paying for Windows every again and I don’t buy any other MS software.

    Remember, even if you buy a new computer that comes with Windows pre-installed you can get MS to refund you for Windows on that machine. They have to refund you if you ask. I’ll be asking from now on!

    • Windows 8 on an ARM processor wouldn’t run all your beloved x86 apps anyway.
      Might as well go android! :)

  7. EricGuest 4 years ago

    koreans paying fees to americans. f

    antastic, give us the money little asians…haha

  8. ShawnGuest 4 years ago

    Ok this won’t affect the nexus prime right?

    • This won’t keep the Nexus Prime from launching. It just means Samsung will be paying Microsoft for the privilege of making the Google phone. Just a tab bit ironic.

  9. DarkseiderGuest 4 years ago

    Apple and Microsoft are doing whatever they can to stay relevant in their respective markets. The mobile industry has spoken and Android is the future, period so Apple is scrambling. The massive data centers and the majority of the internet servers all run some flavor of *nix. The desktop/laptop PC which is Microsoft’s last bastion is slowly dying to the likes of tablets and other competition in Mac OS X and *nix. Unless these behemoths actually get off their laurels and produce something TRULY innovative they will be nothing more than “also rans” in the up and coming Post PC era.

  10. i’m glad samsung have ssettled.

    it means its one less legal battle tying up there time that could be used innovating.

    everyone hates MS for this and i understand why but they are playing the game the way it’s meant to be played.

    it’s apple who want to overturn the apple cart MS just wants some of the apples!

    • AEROSPIKEGuest 4 years ago

      I AGREE, WHY SHOULDN’T MS REAP THE REWARDS OF THERE PAST LABORS, ALL SAID AND DONE THEY WERE THERE AT THE BEGINNING OF THIS SO CALLED MOBILE CONNECTED WORLD OF OURS. IF YOU’LL REMEMBER THEY WERE ONE OF THE FIRST, IF NOT THE FIRST, TO MARRY A MOBILE PC( AND NOT A PIM DEVICE )AND CELL RADIO WITH ACCESS TO CORP. SERVERS AND ALONG THE WAY WAS AWARDED PATENTS FOR THIS LABOR. SO YES MS IS JUSTIFIED IN RECEIVING ROYALTIES AND AS TO WINDOWS 8, IT’S THE BEGINNING OF COMMON COMPUTING( AN OS SHOULD BE ABLE TO RUN ON ANY HARDWARE DEVICE, BE IT MOBILE/DESK ETC. ), AFTER ALL THE COMMON LANGUAGE OF DIGITAL DEVICES IS ZERO’S AND ONE’S!! IT’S BEGINNING TO LOOK LIKE THE CITY OF BABEL, MS HAS TAKEN THE FIRST STEP’S FROM THIS CONFUSION.

  11. wow… i mean from a business stand point ,can you really blame Microsoft.. I mean it is about making money. We may not like it but hey it is a business

    let the negatives flow

    • completley agree and anyone who isnt a fanboy will agree too.

      i +1 you just so you start on a positive :D

    • alterSchw3deGuest 4 years ago

      And more important: If a giant like Samsung signs this deal it seems to be a reasonable use of microsofts knowledge.

      It’s kind of annoying everyone hates Apple for misusing the patent system and filing lawsuits against anyone but now a company like Microsoft is able to make deals without lawsuits then it’s also not okay?

      Patent agreements are nothing new in this business and more important they ARE BUSINESS
      The way apple acts is just kindergarten…

      • Your email address will not be published.Guest 4 years ago

        ach halt doch die fresse

    • It’s just sad, and now annoying, that e-money bags Microsoft is making all that money off someone else’s products. And to actually come out and make that statement that Motorola is the only major manufacture without a license..that is dripping with arrogance. They clearly are reveling in getting over, rather than the (lack of) success of their own platform. But yea, good job with the cutthroat business moves. Samsung should make some faulty won’t devices and abstain from any hardware liability haha.

      • chuckGuest 4 years ago

        Then wouldnt it be equally sad that they’re making all that money off M$’s patents?

      • Technically Microsoft is allowing Samsung to use a Microsoft product (their patent) to create a Samsung product (their phone) with Google’s product (Android). The reason Microsoft gets its share is because Android and the phone wouldn’t work right without the patented software. If there was another way to do it, I’m sure Google could have coded around it.

    • KGGuest 4 years ago

      Agreed, on the same token, I hope Google gets their share from their patent portfolio. I mean, if we are talking about playing the game…..

  12. Eric R.Guest 4 years ago

    The patents Samsung is paying Microsoft royalties to use would be paid no matter what OS is put on the device. Again, this is business as usual. This shows that Microsoft plays nice with their patents, and this IS the actual designed purpose of the patents system. I have a patent you want to use, you pay me a royalty to use it. There is no evidence of an “evil” Microsoft here. That “non-tech / monkey-boy” Balmer just looks like an evil bastard in the doctored up photo in this article (subtle subliminal way to bias the readers opinion as they read). Historically (especially after the EU anti-competitive lawsuit from the 90′s) Microsoft has invested heavily in fostering competition, that strategy works really well.

    People get over it, Microsoft is NOT Apple. Apple IS the evil entity in court suing hardware vendors with bullshit “concept patents” that are ambiguous at best. Apple are the bastards abusing the crap out of the patents system.

    [/rant]

    • nullgodGuest 3 years ago

      Actually, if you follow patent law and the patent practices of all the big companies, Sun, Microsoft, Apple, Samsung, Google, they all take out thousands of patents per year, and pay people bonuses of thousand dollars per patent they acquire for the company. They then use these patents to war between the big companies, trading off licensing to get ahead and try to block the other companies.

      The origin of patents was to protect individuals from being ripped off by their lords and masters, now they are used by corporations to battle each other and to stop small businesses/individuals who don’t have the patent portfolio to protect themselves in the courts.

      The big corporations also don’t care if the patents they take out are feasible, or even been patented before, or they saw it somewhere, ie opensource software, or in a competitors lab, or in any way makes sense.

      One of Microsofts fun tricks thru the courts was to copy a small businesses patented software, tie them up in the court system for a couple of years draining them financially, then buy the business at a very good price (for microsoft) and the patent issue is suddenly in their portfolio, where they then sue others claiming it was theirs all along.

      I get a little upset by the state of the patent system across the entire world, in case you couldn’t tell.

  13. Greed can destroy any company, not just apple. Just watch.

  14. raaGuest 4 years ago

    this pic of Microsoft’s ceo is so creepy Damn!!!! Who ever did that pic good freaking job

  15. willerGuest 4 years ago

    hate patents wars